1. Field of the Invention
The present invention is directed to a system, method and device for performing transactions, such as financial transactions, via a communications link. More particularly, the present invention is directed to a system, method and device for performing financial transactions, such as sales transactions at a point of sale terminal, via a wireless communications link. Still more specifically, the present invention is directed to utilization of a hand held electronic device, such as a cellular telephone, a pager, or a hand held personal computer, for performing financial transactions and, particularly, sales transactions via a wireless communications link.
2. Description of the Related Art
The popularity of cashless transactions is widespread. In this regard, a substantial quantity of transactions are made everyday by consumers utilizing credit or debit cards. As is known, these cards typically employ a magnetic strip having data indicative of the account holder and corresponding account thereon. The cards are passed through a reader connected to a point of sale terminal, and an appropriate number of monetary units corresponding to the transaction being made are either credited to, or debited from, the account corresponding to the card.
More recently, “Smart Cards” have been proposed, and have gained some popularity. Unlike conventional debit and credit cards, which are typically passive devices, Smart Cards are stored-value products in that the card maintains a “stored value” of funds available to the consumer for access primarily at retail locations. The “stored value” is typically stored on a computer chip within the card, or possibly on a magnetic strip. The card is considered “smart”, because the stored value may be added to, such as at an automatic teller machine, and may be subtracted from, such as the case when a balance recorded on the card is debited at a merchant's POS terminal when the consumer makes a purchase.
The most sophisticated systems currently available permit consumers to store substantial amounts of “e-cash” on the card. Some Smart Cards allow the consumer to obtain additional cash from ATMs in addition to making purchases. Some also have a feature by which the consumer can “load up” by accessing a line of credit. Depending upon the type of Smart Card utilized, one purported advantage of Smart Cards is that they can operate like cash in that there is no requirement for accessing a central facility, storing and retrieving data from the central facility, or storing a record to the central facility.
While each of the foregoing types of electronic cash, debit, and credit products are useful for their intended purposes, each has drawbacks. For instance, credit, debit, and Smart Cards are issued by a particular financial institution or a vendor. While the cards may be utilized at a wide variety of merchant locations, the consumer has no choice of which account he or she wishes to correspond with a transaction, unless the consumer has multiple such cards. Additionally, each of the foregoing types of cards is limited to its particular purpose, and is not usable for any other function.
In addition to the widespread and increasing popularity of various types of bank cards and Smart cards, the proliferation of wireless communication devices has been widespread in recent years. In this regard, cellular telephones, pagers, and hand or palm held personal computers have gained widespread popularity. The devices are useful not only for transmitting and receiving voice and data, but also for storing information, such as addresses, telephone numbers, etc. depending upon the particular features and function of the device. In short, however, the number of users and the volume of use of such products is substantial and growing rapidly.
In spite of the widespread use and popularity of cellular telephones, pagers, and hand held computers, these products have not previously been used for making financial transactions and, particularly, for transacting sales at merchants point of sale terminals. In this regard, conventional point of sale terminals are not equipped to communicate with a wireless communication device. There have been some attempts at combining Smart Cards and Smart Card readers with wireless communication devices. For example, U.S. Pat. No. 5,890,052 is directed to a portable wireless telephone structure in which a foldable wallet carries a telephone, in addition to having a pocket to house paper currency. The telephone may be utilized to transfer money from a bank account to the Smart Card. Thus, according to the patent, apart from storage of bank notes as required by the user, the only additional bulk required with the structure is a single Smart Card for use with the telephone for transaction purposes. U.S. Pat. No. 5,796,832 is directed to a wireless transaction information system which permits a wireless or cellular telephone hook up to a financial institution. A particular feature of the invention is that a “Smart Card” is utilized to verify authorization for banking transactions, or to maintain a secure record of available funds.
The inventions disclosed in the foregoing patents have not gained widespread popularity, primarily due to the fact that Smart Cards themselves have not gained overwhelming popularity. Moreover, neither patent provides a user the ability to perform sales transactions at a point of sale terminal using a wireless communication device.
Even more recently, proposals have been made to include Internet browser software in cellular telephones, for allowing a user of a cellular telephone device to browse the Internet via a wireless communications link. These proposals, however, are directed at permitting the user of a cellular telephone to browse the Internet for information, but do not address the need to make financial transactions utilizing the cellular telephone. Other recent proposals involve using a cellular telephone to remotely control home appliances in so-called “smart” houses. Again, these proposals do not address using the cellular telephone to make sales transactions.
Accordingly, in view of the overwhelming popularity of electronic transactions and wireless communication devices, the need exists for a method, system and device for performing sales transactions at a point of sale terminal via a wireless link from a wireless communication device, such as a cellular telephone, pager, or hand held personal computer. The present invention fills these and other needs, while overcoming the drawbacks of the prior art.